Legal Conciliation Law Firm

Conciliation is a non-judicial alternative dispute resolution (ADR) process which is opted for to resolve the different issues between the parties. Conciliation is dealt under sections 61-62 of the Part III of the Arbitration and Conciliation Act, 1996.

The concept of pre-trial conciliation was put into the practice by the Hon’ble High Court of Himachal Pradesh back in 1984 based on the Michigan Mediation in the USA, which was widely appreciated by the Law Commission of India in their 77th and 131 reports. This was again a court induced model of conciliation which was to be attempted by the parties prior to the litigation. However, with the enactment of Part III to the Arbitration and Conciliation Act, 1996, a legislative work for the regulation of the “Voluntary Conciliation” was being introduced.

Conciliation is a voluntary and a classified mention to resolve the dispute between the parties involved. It is governed by specific procedure and guidelines and in India the process of the conciliation is being governed by the Arbitration and Conciliation Act, 1996. In conciliation, a neutral third party, known as the conciliator, assists the parties to reach an amicable settlement with the assistance of the conciliator. The conciliator acts as a facilitator, helping the parties identify and explore the issues in dispute, understand each other’s perspectives, and find common ground for amicable settlement.

There is one major advantage for the parties to choose conciliation is that though the amicable settlement in conciliation could not be reached then the evidence leaded and the proposal made during the conciliation proceedings cannot be disclosed in any other proceedings (in arbitration also) This protection has been provided by the Arbitration & Conciliation Act, 1996 itself. Therefore parties can attempt Conciliation without any risk.
It is a non-binding procedure. For effective conciliation, it is necessary that the parties to dispute should be brought together face to face at a common place where they can interact with each other & with the conciliator to arrive at a settlement of the dispute.

The importance of conciliation is that in other proceeding decision is given by the presiding authority & it is binding accordingly. But in conciliation there is amicable settlement where parties themselves have reached to the decision i.e. settlement & which is binding as per their decision. Third party i.e. conciliator is just helping to arrive at settlement & not dictating the term or decision.

Conciliators must act independently and in unbiased manner throughout the conciliation proceedings between the parties. Conciliators should only aim and strive the best to reach an amicable settlement between the parties fairly and in a justified manner.

The conciliator should adhere to principles of fairness and justice. This involves considering the rights and obligations of the parties, relevant trade practices, and the circumstances surrounding the dispute, including any prior business dealings between the parties.

All matters relating to the conciliation proceedings are to be treated as confidential by the conciliator and the parties involved. If a party provides information with the condition of confidentiality, the conciliator must not disclose that information to the other party without consent.
Our firm has sterling expertise in providing valuable advice to our clients nationwide. We have succored our clients over the years in best possible ways throughout the process of Conciliation. Our adept team has even travelled the country wide to give adequate guidance to our clients in the matters of conciliation. We endeavor and give our best efforts to make the Arbitration process expedient and serene for our clients.